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1 13 Kingiport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system

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1 13 Kingiport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes partido predetermined overhead rates on a quarterly basis using the number of units to be produced as the location base is estimated costs by quarter for the coming year are given below Quarter Second Third Tourth Direct materials 5 240,00 $ 120,000 $ 60,00 $ 110,00 Direct Tabor 120,000 64,00 32.000 06.000 Manufacturing everte 300. 220.000 188, Total manufacturing costs la 56 3401 5212, of units to be produced 50,00 40.000 20.00 Estimated sit profuct cost cal+ ) 5 10.1 5 13.60 Management finds the variation in Quarterly unit product costs to be confusing, it has been suggested that the problem lies with manufacturing overhead because it's the largest element of total manufacturing cost According you have been asked to find a more sopropriate way of assigning manufacturing overhead cost to unts of product Required: t Assuming the estimated variable manufacturing overhead cost per unit is $200 what must be the estimated total fed maruttuning overhead cost pel cuartel? 3. Assuming the stumption about cost behavior from the first three quarters hold constant what is the estimated tant product cost for the fourth quarter What is causing the estimated ut product cost to luctuate from one quarter to the next 4 Asuming the company computer ce predetermined overhead rate for the year rather than computing quarterly overhead rates calculate the unit product cost for all units produced during the year Complete this question by entering your answers in the tabs below Keret! Fred2 Required Required Asuming the estimated table manufacturing overhed cost per un $200, wut must be the estimated to manufacturing Cerca cost per quarter? CHICCOLI 1 Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base its estimated costs, by quarter, for the coming year are given below. 10 points eBook Print Quarter First Second Third Fourth Direct materials $ 240,000 $ 120,000 $ 60,000 $ 180,000 Direct Labor 128,000 64,000 32,000 96,000 Manufacturing overhead 320,000 220,000 180,000 Total manufacturing costs (a) 5.668,000 5404,000 5 272,800 $? Number of units to be produced by 80,000 40,000 20,000 60,000 Estimated unit product cost (a) - 0 $ 8.35 $ 10.10 5 13.60 $2 Management finds the variation in quarterly unit product costs to be confusing. It has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product Required: 1. Assuming the estimated variable manutacturing overhead cost per unit is $2.00, what must be the estimated total fixed manufacturing overhead cost per quarter? 2. Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter? 3. What is causing the estimated unit product cost to fluctuate from one quarter to the next? 4 Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates, calculate the unit product cost for all units produced during the year. References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Recured 3 Required 4 Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter? (Do not round intermediate calculations and round your final answer to 2 decimal places) Una product on 1 10 points ebook Kingsport Containers Company makes a single product that is subject to wide seasonal variations in demand. The company uses a job-order costing system and computes plantwide predetermined overhead rates on a quarterly basis using the number of units to be produced as the allocation base. Its estimated costs, by quarter for the coming year are given below: Quarter First Second Third Fourth Direct materials 240,000 $ 120,000 $ 60,000 $ 180,000 Direct labor 128,888 64,000 32, see 96,000 Manufacturing overhead 300,000 220,000 180, e 7 Total manufacturing costs (a) $ 668,888 $ 404,000 $ 272,000 $? Number of units to be produced (b) 80,00 40,000 28,000 60,000 Estimated unit product cost (a) + (b) $ 8.35 5 10.10 $ 13.60 $? Management finds the variation in quarterly unit product costs to be confusing. It has been suggested that the problem lies with manufacturing overhead because it is the largest element of total manufacturing cost. Accordingly, you have been asked to find a more appropriate way of assigning manufacturing overhead cost to units of product Required: 1. Assuming the estimated variable manufacturing overhead cost per unit is $2.00, what must be the estimated total fixed manufacturing overhead cost per quarter? 2. Assuming the assumptions about cost behavior from the first three quarters hold constant, what is the estimated unit product cost for the fourth quarter? 3. What is causing the estimated unit product cost to fluctuate from one quarter to the next? 4 Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates, calculate the unit product cost for all units produced during the year. Print References Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Assuming the company computes one predetermined overhead rate for the year rather than computing quarterly overhead rates, calculate the unit product cost for all units produced during the year (Do not found intermediate calculations and round your final answer to 2 decimal places) Unit product cost

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